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Industry Data Report Remodeling 2019 - 2020

Report Highlights ➢ Remodel data and analysis on 50+ national chains, including: (1) remodel progress/system condition; (2)

investment costs; (3) post remodel sales increases; (4) estimated return on investment; (5) franchisor remodel

incentives; and (6) program scope.

Conclusion ➢ The pace of remodels picked-up substantially in 2019 as new/improved programs from 2018 took effect and

operators caught-up on remodel mandates. While remodel costs are trending higher given higher-end upgrades,

new technology and rising construction labor costs, remodel ROI is improving due to higher sales bumps and

stabilizing unit level margins.

Table of Contents Pages

➢ Chain Remodel Progress Summary 2 – 4

➢ Chain Remodel Benchmarking Stats 5

Remodel Trends

➢ Remodel Costs 6

➢ Incremental Sales Lift 7

➢ Year 1 Remodel Return on Investment 8

Remodel Overview by Chain

➢ Remodel Incentives by Chain 9

➢ Fast Casual 10

➢ Family 11 – 12

➢ Casual 12 – 13

➢ Chicken 14

➢ Sandwich 15 – 19

➢ Sub-Sandwich 19 – 20

➢ Pizza 21

➢ Coffee/Bakery 22

Appendix

➢ Remodel Appendix 23

Data in spreadsheet form available at http://www.ChainRestaurantData.com

Copyright: This Restaurant Research LLC document is copyrighted material. Due to the No Electronic Theft (NET) Act of

1997, electronic forwarding or other forms of redistribution, without the express permission of Restaurant Research LLC, are

violations of law and could be subject to fines of up to $250,000 and up to five years of imprisonment, even when no financial

gain or commercial advantage accrues to the forwarder/re-distributor. Copyright 2019 Restaurant Research® LLC. All rights

reserved.

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http://www.chainrestaurantdata.com/


IDR: Remodeling 2019 - 2020 Source: RR Estimates

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Percent of System at Current Image

➢

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Minor Major Minor Major Minor Major Minor Major Minor Major Average

Panera Bread

Qdoba

Fast Casual

Denny's

IHOP

Perkins

Family

Chili's Grill & Bar

Olive Garden

Texas Roadhouse

Buffalo Wild Wings

Applebee's

Outback

Red Robin

Casual

KFC

Bojangles'

Church's

Popeyes

Chicken

Checkers/ Rally's

Dairy Queen

Jack in the Box

Sonic Drive-In

Culver's

Arby's

Taco Bell

Five Guys

Wendy's

Burger King

McDonald's

Carl's Jr.

Hardee's

Zaxby's

Chick-fil-A

Sandwich

Jersey Mike's

Firehouse Subs

Jimmy John's

Subway

Sub-Sandwich

Domino's

Little Caesars

Pizza Hut

Pizza

Dunkin Donuts

Coffee/Bakery

Total FSR

Total QSR

Grand Total

(2) Estimated incremental cash flow-thru margin (= 2x concept EBITDAR margin) reflects the benefit of sales leverage given a restaurant's significant level of fixed costs.

(1) Average remodel cost/estimated useful life (7 years for a minor & 10 years for a major)/AUV.

(3) Return on investment (ROI) = (year 1 % sales lift * AUV * estimated incremental cash flow-thru margin)/cash remodel investment.

Chain Remodel Benchmarking Stats (Ranked by Average ROI)

ChainEstimated Remodel Cost Cost/ Sq. Ft. Remodel Cost/AUV

(1) Major Remodel/

New Build Cost

Remodel Sales Bump Incremental Cash

Flow-thru % (2)Remodel ROI

(3)

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Remodel Trends

Remodel Costs

➢

➢

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Post Remodel Sales Lift

➢

➢

➢

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Remodel ROI

➢

➢

➢

➢

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Remodel Incentives by Chain

Burger

King

Checkers/

Rally's

Dairy

Queen

Domino's

Jersey

Mike's

McDonald's

Subway

Wendy's

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Remodel Summary by Chain

Fast Casual

Chipotle

Corner

Bakery Café

Moe's

Southwest

Grill

Panera

Bread

Qdoba

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Family

Bob Evans

Cracker

Barrel

Denny's

Golden

Corral

IHOP

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Family

Perkins

Casual

Applebee's

BJ's

Restaurants

Buffalo Wild

Wings

Cheesecake

Factory

Chili's Grill

& Bar

Olive Garden

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Casual

Outback

Red Lobster

Red Robin

Texas

Roadhouse

T.G.I.

Friday's

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Chicken

Bojangles'

Church's

KFC

Popeyes

Wingstop

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Sandwich

Arby's

Burger King

Carl's Jr.

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Sandwich

Checkers/

Rally's

Chick-fil-A

Culver's

Dairy Queen

Five Guys

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Sandwich

Hardee's

Jack in the

Box

McDonald's

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Sandwich

McDonald's

Continued

Sonic Drive-

In

Taco Bell

Wendy's

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Sandwich

Whataburger

Zaxby's

Sub-Sandwich

Firehouse

Subs

Jersey

Mike's

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Sub-Sandwich

Jimmy

John's

Subway

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Pizza

Domino’s

Little

Caesars

Papa John's

Pizza Hut

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Coffee/Bakery

Dunkin

Donuts

Krispy

Kreme

Starbucks

Tim Horton's

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Remodel Appendix

Remodel Classification Overview

Remodel Type Scope of Work Frequency (in Years)

Refresher

5

Minor Remodel

7

Major Remodel

10

Scrape & Rebuild

25

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Visit www.chainrestaurantdata.com or contact us at

(860) 352-2198 or [email protected] to:• Ask us about custom research projects

• Inquire about RR Thermometer email marketing opportunities

Copyright: This Restaurant Research LLC document is copyrighted material. Due to the No Electronic Theft (NET) Act of

1997, electronic forwarding or other forms of redistribution, without the express permission of Restaurant Research LLC, are

violations of law and could be subject to fines of up to $250,000 and up to five years of imprisonment, even when no financial

gain or commercial advantage accrues to the forwarder/re-distributor. Copyright 2019 Restaurant Research® LLC. All rights

reserved.

Sources: All data represents RR estimates which are derived from various private and public sources.

Disclosure: Restaurant Research LLC often sells report subscriptions to concepts under our coverage.

Disclaimer of Liability: Although the information in this report has been obtained from sources Restaurant Research® LLC

believes to be reliable, RR does not guarantee its accuracy. The views expressed herein are subject to change without notice

and in no case can be considered as an offer or solicitation with regard to the purchase or sales of any securities. Restaurant

Research’s analyses and opinions are not a guarantee of the future performance of any company or individual franchisee.

RR disclaims all liability for any misstatements or omissions that occur in the publication of this report. In making this report

available, no client, advisory, fiduciary or professional relationship is implied or established. This report is intended to provide

an overview of the restaurant industry, but cannot be used as a substitute for independent investigations and sound business

judgment.

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